CCI Failure Swing Strategy

The CCI Failure Swing is based on the Commodity Channel Index forming a lower high above +100 or a higher low below -100. This inability to make a new extreme often signals the end of the prior trend.

Testing indicates an average annual return of about 73%. It performs best in the crypto market.

The strategy goes long when CCI holds above -100 and turns up, or short when it fails near +100 and turns down.

A percent stop keeps risk small and trades exit if the CCI crosses back through the previous swing level.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Reversal
  • Direction: Both
  • Indicators: CCI
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium